German telecommunications company Deutsche Telekom on Monday outlined its artificial intelligence (AI) strategy at an investor day in Bonn, highlighting how the technology will generate additional revenue and reduce costs.
The company expects to generate around €250 million ($280 million) in AI-related revenue from businesses outside the US in 2026 and aims to increase this to around €800 million by 2030.
Telekom sees AI and automation generating gross savings of around €1.1 billion outside the US in 2027, compared with 2023, rising to around €2.5 billion in indirect cost savings by 2030.
The company said AI is already being used in customer service, network operations, software development and administrative processes.
The company’s “Frag Magenta” chatbot handled around 2.6 million customer service calls in the first half of 2026, while its RAN Guardian Agent has reduced response times for network events from several hours to about one minute.
Initial AI applications in customer service have also reduced complaints by 30%, Telekom said. More than 100,000 employees have been trained to use AI tools under its “AI for All” initiative.
The company also sees sovereign AI as a growth opportunity in Europe and is developing a platform for small and medium-sized businesses.
Telekom expects AI and automation savings of €100 million to €150 million between 2023 and 2027, with part of the savings to be reinvested in digital transformation and fibre-optic expansion in Germany.
The company also reaffirmed its financial outlook and medium-term targets.
